Home Loans for Government Employees

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A benefit that Indians enjoy is specially designed home loans for government employees. Many public sector banks like SBI and Punjab National Bank offer a particular Home Loan for government employees at low interest rates starting from 6.95% per annum. These tailored deals and rebates on home loans are also introduced to assist the government employees in buying/constructing a new house.

Nationalized banks like SBI and Indian Bank offer exclusive Home Loan schemes to the Central Government and defense personnel employees. The Privilege Home loan and Shaurya Home Loan scheme are the two unique plans. The interest rates for Indian Bank home loan for general borrowers are between 7.50% to 8.50%, wherein these programs, the government servants and defense personnel can obtain a Home Loan at a lower interest rate in a shorter period. The maximum eligible age is also increased from 70 to 75 years until the loan matures along with attractive interest rates.  

For the Privilege Home Loan, the eligibility criteria and features are as follows - 

1. Eligibility criteria: Central/State Government employees, which includes Public Sector Banks (PSBs), PSUs, as well as retired professionals who are entitled to pension services.

2. Features: 

• Lower interest rates (brought down by 0.05%-0.1% than usual interest rates; starting from 6.95% per annum)

• The processing fee is waived off completely, but the credit charges and stamp duties remain the same.

• Central Government employees can switch from NBFCs and other private sector banks with outstanding balances to avail themselves of better interest rates. 

• CIBIL score should be more than 650.

3. Documents required:

• Employer ID proof

• Self-Attested Loan application form 

• Two passport size photographs

• Proof of residence (Ration Card/Utility bills/Voter ID)

• Property Papers (Permission for construction/Registration certificate/Agreement for Sale/Occupancy certificate)

• Income Proof (Salary slip of last three months/Form 16/ITR)

• Credit report

• Bank account statement for the previous 3-6 months.

Shaurya Home loan scheme is specifically for Defence personnel and their family members as co-applicant. Its eligibility, features, and other details are -  

4. Eligible candidates: Defence officers and clerks of Army, Navy, Air Force, and Special forces.

5. Features: 

• Interest rates: Like privileged Home loans, the interest rate is slightly lower than for general borrowers, ranging from 6.90%-7.40% per annum.

• After retirement, the EMI payout gets reduced as the limit is around 50% of the net monthly income.

• The loan tenure is relatively longer for defense personnel and can be increased from 25 years to 30 years.

• Like the Privilege home loan scheme, the outstanding balance can be switched to any of the nationalized banks for a lower interest rate and tenure.

• The Home loan gets pre-approved for defense personnel and saves the additional time taken in the application process.

6. Documents required: The documents needed for the Shaurya scheme are the same as those for the Privilege HL Scheme.

If the government employee is a woman, then the benefits are even more as they get coupled with special Home loan schemes for women. The processing fee is also waived off, and the terms & conditions aren't strict either. Married couples also get the same benefits if both the husband and wife apply as co-applicants.

There is a maximum interest rate cap for Home loans for government employees currently set at 8.5% per year, and it gets revised every three years. 

  

Conclusion

The advantage of having a customized Home Loan just for government employees helps them even if they have a lower income or budget. These schemes enable the applicants to buy their new houses at reasonable interest rates and for longer tenures.

Also Read This-The Procedure Of Home Loan

The Procedure Of Home Loan

The concept of home loans is straightforward to understand. In-home loans, many purposes related to home are fulfilled. Some of the goals for which a home loan is taken are:

• Home Purchase Loan.

• Home Construction Loan.

• Home Improvement Loan.

• Home Extension Loan.

• Land-Purchase Loans/Plot Loan.

• NRI Home Loan.

Home loan are an integral part of the financial market and are offered by almost all banks and financial institutions. There are many features of home loans that make them better than other sorts of loans available in the market.

• Easier availability- 

Home loans are very readily available and are offered by all the financial institutions in the market. The procedure to apply for a home loan has also been simplified and made accessible to the ordinary person too.

• Lower interest rates-

Home loans are available at low-interest rates in the market compared to other forms of loans, such as gold and personal loans. The minimum rate of gold loan touches the 7% mark; home loans are available at an interest rate as low as 6.6%, which makes them affordable. Bank of Baroda home loan is said to provide the home loans at a reasonable interest rate in the market.

• The benefit of tenure-

Home loans are generally available for a long tenure and can extend to as long as 30 years. This makes them easy to pay as you have been given more time to repay. More the time, more the instalments and more the instalments lesser the amount which is to be paid as each instalment.

• Helps in the improvement of credit score:

With the help of a home loan, credit score can be improved. A home loan timely repayment and good relations with the bank helps the credit score to increase significantly. This makes home loans preferred by almost all the borrowers who want to improve their credit score and avail themselves of better credits at lower rates in the future.

• Easier repayments:

A borrower can choose between two payments in a home loan- one of the fixed interest rates and floating interest rates. Fixed interest rates are the rates that remain fixed irrespective of the market conditions, while a floating rate is a rate that changes according to the market conditions. Both are to be paid in EMI, which is also called Equated Monthly Installments. EMI consist of the interest amount which is charged as fees by the banks, and it also includes a part of the principal amount contained therein, which is to be paid every month in small proportion throughout a significant period.

Home loans can be availed through two modes- one is an online mode, and another is offline modes.

Let us understand how to apply for a home loan through both methods:

• Applying for a home loan through offline mode:

To apply for a home loan through offline modes, one has to visit the bank branch through which they want to avail of a home loan. The customer has to fill out the form and deposit the documents with the bank.

• Applying for a home loan through online modes:

To apply for a home loan through online mode, a customer has to visit the portal or mobile application of the bank, submit the documents online and apply for a home loan at their fingertips.

Following are the eligibility criteria which is required to be filled in both online and offline modes:

• Self-Employed Individuals: The age of the applicant has to be between 18 – 65 years, and the applicant must have experience of 5 years of in their profession.

• For Salaried Professionals: The applicant's age has to be between 18 – 65 years, and the applicant must have been in employment for a minimum of 2 years.

• The credit score required in all the cases is 750 and above. 

Conclusion:

Home loans are financial services that are easy to apply and faster to avail. Banks have made the whole process simple and less complex for a seamless experience by the customers.

Also read this: Why should you avail of a Home Loan?

Home Loan Protection

A home loan is a sum of money borrowed from a bank or a money lending firm at a fixed interest rate and paid back monthly with an Equated Monthly Instalment (EMI). Yes Bank, one of the country's leading private banks, has reduced the interest rate on home loans. The Yes Bank's Home Loan allows you to pursue your dreams without having to worry about money. They offer a variety of loan terms and competitive home loan interest rates to help one achieve their financial goals. The Yes Bank provides appealing home loan options at competitive interest rates, as well as a wide range of loan amounts and terms.

Features 

• The interest rate on a Yes Bank home loan starts at 8.95 percent.

• The Yes Bank charges a processing fee of up to 2%, with a maximum of $15,000 per transaction.

• The Yes Bank's lowest home loan EMI calculator per lakh on a home loan is Rs.836 per lakh, with the lowest interest rate of 8.95 percent and a loan term of 25 years.

• On floating rate loans, Yes Bank makes prepayment with no penalties.

• Extended loan terms of up to 35 years are available.

• The process of documentation is simple.

• Processing time is fast.

• Balance Transfer and Top-Up Facilities are also available.

• Service at Your Door.

• Individualized strategies for self-employed people are offered.

Eligibility

• The age limit must be about 23 to 60 years.

• Income - 

• Salaried: Rs. 25,000 per month.

•  Self-employed: Rs. 4 lakh per annum.

• Work Experience -  

• Salaried: 2 years.

• Business stability/Self-employed individuals: 2 years.

• Loan Amount is about Rs. 10 lakh to Rs. 5 crore.

Eligibility Criteria for the PMAY-

• The house should ideally be purchased in the name of a female household head or in the joint name of the male household head and his wife.

• The beneficiary family does not own a pucca house in India in the name of any of their members.

• In the cases of married couples, either partner or both would be liable for a single subsidy if they own their home together.

• The beneficiary family must not have received central assistance under any other Government of India housing scheme or any benefit under any other PMAY scheme.

Documents Required-

• Complete loan application has been completed and is the size of a passport. 

• Proof of identity - Passport/License/Voter Driver's ID/PAN.

• Proof of residence - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport .

• Business evidence such as VAT/service tax registration, company incorporation details, business address proof, profit and loss account, and balance sheets approved by a CA, a copy of partnership deed, and evidence of business life and profile.

• Property Documents - Title Chain in the Past: Conveyance deed, sales deed, allotment letter, copy of an authorized plan for construction/extension, possession letter, most recent property tax receipt.

Conclusion:

Home loan by Yes bank provides a home security plan to ensure the applicant's property is protected. You are able to include your spouse or family member also as co-applicant for the loan. All co-owners of the house, on the other hand, should be co-applicants. You can get a loan for around Rs.10 lakh as the minimum amount. If you are eligible, you can connect your home loan to the PMAY (Pradhan Mantri Awas Yojana) scheme. You have the option of switching from fixed to floating interest rate loans and vice versa. Part prepayments assist you in reducing the remaining loan balance, which reduces the amount of interest due. Paying the same Home Loan EMI after making part payments would raise your contribution in the principal sum, allowing you to repay the loan faster.

Personal Loans As The New Business

 

These things, my friend, are called ‘The Subtle Art of Making Money.’ You cannot point fingers at those who are doing such businesses first; because it is legal; second, they help you get money too.  

There’s a concept called ‘cash-flow,’ which means that cash flows from one person to another. The cash flow is the aspect of business that keeps the company up and running.  

There’s also a concept named ‘accumulated wealth’; in layperson’s terms, this means that some people accumulate their wealth to themselves instead of sharing it with others. Now that we’re clear with these two concepts, let’s move further.  

We will discuss four essential things that one should understand individually to understand how the business of personal loan works in the first place. 

• Understanding the basics.
• Impact on the borrowers.
• Effect on banks
• Looking at this facility in the context of the overall economy. 

 Let’s initiate this informative process!

1.  Beginning with the basics:-It is an unsecured (collateral-free) type of credit facility most feasible for the people in the service sector. The personal loan interest rates depend on the amount of loan you take and the tenure. The credentials are also a factor that influences this rate, concerned mainly with the eligibility criteria. The eligibility criteria are that the borrower should be of legal age. The borrower should have a credit score of 750. They should produce identity proof, address proof, and income slip for this loan facility to process further. The debt has specified time and is settled in the given time only.  
2. Influence on the borrowers:-These loans are for anyone who has a credit score above 750. A higher credit score implies higher and better creditworthiness and reliability. It is a forming part of the personal loan eligibility criteria. The person should be able to pay back the loan in the mutually agreed time frame. A person can use that money for business expansion, investments, land procurement, weddings, or anything they want. Loans strengthen the purchasing power of an individual. Thus they are capable of influencing a purchase that is beyond their budget. It helps the borrower to increase his standard of living as well.  
3. Banks are getting affected:-The effect of this loan facility is mostly on the borrower, but the other side always remains in the curtains because people don’t want to explore it. Bollywood has still managed to put bank personnel in a bad light, where they take money from the people. However, the reality is something else. Banks also get benefited from every loan one takes. When you take a loan, you are liable to pay interest to the bank every month, or however, your scheme asks you to do so. That way, you increase the cash-flow within the bank itself. For example, when we take an SBI personal loan, then the bank gets profits by the interest it takes. Your money helps them to disburse loans to others. It is how it completes a ‘Circle of Loans’, and that’s how you and the bank benefit from these loans or any other loans.  
4. Effect on macro-level:-Now that you have understood the two-way stream of cash-flow, we’ll see how it seeps into the ground of the economy and affects everyone in general. Now that you have taken a loan, you have a better purchasing power in your hand than before. It starts a new cycle. For example, you’ve taken out a loan to pay off a certain amount of debts and buy something new. When you repay the debts to the person you owed to, you have shared this purchasing power with him. He then uses the money you’ve paid for something else, and that’s how the money keeps rolling through his chain. Similarly, when you buy something, for example, a new phone. The money that you pay to the company, for instance, Croma. The Croma store manager distributes that money to its employees, thus giving them an individual purchasing power. 

These were the four factors that tell us how the business of these loans runs on a more significant level. All the above examples were very minute, just to make it lucid to understand. In reality, it has a more massive impact on the economy. Especially in these times when the GDP (Gross Domestic Product) is low, loans can be an alternative to keep some cash rolling around.

Read More:-  Possible reasons for personal loan rejection

Check Home Loan Balance Status.

The ICICI home loan is a cost-effective and convenient home loan program designed to help people succeed in their dream of owning a home. ICICI Bank provides qualifying borrowers housing loans with low-interest rates beginning at 6.90 percent per annum, extended loan terms of up to 30 years, and simple repayment options. The processing fees range from 0 percent to 0.50 percent of the loan amount (plus applicable taxes) and no prepayment penalty on floating rate loans. ICICI is also affiliated with the PMAY Scheme, which provides homebuyers with a financial boost. Check out the various schemes below, along with their features, advantages, interest rates, and other fees, and fulfill your goal of owning a home a reality with ICICI Bank Home Loan.

Interest Rates

For Salaried Employees:-

•  Loan Amount of up to ₹ 35 lacs - 7.05% - 7.85%.
•  Loan Amount of ₹ 35 L to ₹ 75 lacs - 7.10% -7.95%.
•  Loan Amount of above ₹ 75 lacs - 7.10% - 8.05%.

For Self Employed Employees:-

•  Loan Amount of up to ₹ 35 lacs - 6.90% - 7.60%.
•  Loan Amount of ₹ 35 L to ₹ 75 lacs - 7.00% - 7.75%.
•  Loan Amount of above ₹ 75 lacs - 7.00% - 7.95%.

Eligibility:-

• Age:

1. The age of the applicant must be between 18 years and 65 years.
2. The age of the co-applicant must be between 21 years and 65 years.
3. For NRIs, the minimum age is 25 years, and the maximum age is 60 years.

• Status of Residence:

1. Indian residents are eligible for a Home Loan.
2. NRI is also eligible.

• Applicants belonging to the following types of employment are eligible:

1. Salaried employee.
2. Self-employed.
3. Self-employed professional.

Documents Required:-

• Identity proof - Voter ID/ Aadhaar Card/ Valid Passport/ Driving License/ PAN Card (any one).
• Proof of Residence - Driving License/ Passport/ Copy of Utility Bills/ Aadhaar Card/ Voter ID.
• Age proof - Birth Certificate/ Aadhaar Card/ Valid Passport/ Voter ID.
• Proof of income - Bank account statements for the past six months/ Latest Form 16 or Income Tax Returns.
• Other Documents - Processing fee cheque in favor of the bank/ Duly filled loan application form with passport size photographs.

Features:-

• Customers can track their home loans using the feature.
• Salaried employees can avail themselves of the home loan facility instantly.
• No prepayment charges are levied on floating-rate loans.
• The process of documentation is seamless and straightforward.
• It also offers home loan insurance.
• Longer tenure of up to thirty years is permitted.
• The home loan can be sanctioned even before selecting a property
• You can enjoy a fixed rate of interest for the first ten years and opt for fixed or floating rates after that.

Conclusion:-

You may apply for an ICICI Bank Home Loan either directly through the bank or online marketplaces. Home loan eligibility is determined by considering a number of factors such as monthly revenue, fixed monthly commitments, current age, and retirement age. Your home loan qualifications can also determine how affordable a home loan is for you. The ICICI Bank Home Loan Eligibility Calculator will help you figure out how much you can borrow. ICICI Bank allows you to move your current loan in a simple and hassle-free manner.  By taking an ICICI Bank Home Loan, you will save interest, pay affordable EMIs, and also save money.

Must read:-  Why People Choose Home loans

Can I avail Personal Loan for Agricultural Purposes

Agriculture loan in India is all over India doesn't simply include the cultivating exercises for the development of yields and everything except likewise some other types of agriculture, for example, animal and agriculture and gardening and silk cultivating or apiculture. A portion of the fundamental regions covered under a cultivating personal loan are: 

• Overseeing every day activities in agriculture 
• Acquisition of work vehicles and reapers and other cultivating apparatus 
• Acquisition of cultivating lands and so forth 
• Putting together storerooms in agriculture 
• Promoting of the items in agriculture 
• Transportation cost from ranches to business sectors and so forth 
• Extension of agricultural exercises for ranchers 

Aside from this, there are additionally monetary guides, for example, awards and endowments that ensure the rancher in case of harm to crops because of climate conditions or different variables in personal loans. The fundamental motivation behind Agricultural Loans is to give FICO rating stream to the smooth working of the cultivation area in the country in India. This includes the quantum of creation and efficiency in the agriculture field. 

Eligibility rules for Agriculture Loans in India? 

A wide range of ranchers, for example, little and minimal ranchers in India and tenant farmers and oral residents and sharecroppers are qualified to apply for Agricultural Personal loan eligibility. 

Reports needed for the Agriculture Loans? 

The arrangement of reports needed for profiting agricultural loans are exceptionally essential like ordinary archives identified with agriculture as it were. 

• Substantial Photo personality confirmation like PAN 
• Substantial location evidence we can incorporate AAdhar 
• Evidence of land-possession and income receipts and a record of rights and so forth 
• Kisan Credit card it should this is a card given to every one of the ranchers for agriculture 
• The interest rate for the Agricultural Loan 

Harvest Loans: 

According to guidelines by the public authority of India for agricultural yield loans more than Rs 4 lakhs the interest rate is 8% PA If the ranchers can reimburse the loan opportune it is acceptable they are offered an interest aid of 4% and bringing about the interest rate 5% PA. For agricultural loans past Rs 4 lakhs and the interest is charged according to TATA capital personal loan orders. As per the bank's guidelines and for loans up to Rs 2 lakhs, there is no necessity for security. For loans above Rs 2 lakhs, there is a prerequisite for archives identified with agriculture. 

Post-reap: 

The interest rate for the post-reap personal loan is 8% with interest rate and If the ranchers benefit post-collect personal loan against debatable stockroom receipt and the banks will charge business interest rates and expenses. 

Land buy: 

The interest rate for land bought inside 6 km of the rancher's home like town or city changes on schedule. For loans up to Rs 60, 200 and there is no edge needed in this. Notwithstanding, for loans above Rs 60,2000, the edge prerequisite is 9%. 

Can our Agriculture Loan be utilized to buy land? 

Why not, it very well may be utilized to back land buys yet just inside the sweep of 4-6 km of the rancher's home or town. 

• Kinds of Agricultural Loans 
• Country Development 
• Kisan Credit Card 
• Loans by any Banks 
• Loans by any bank in India 
• Private Sector Bank Agricultural Loans 

The Kisan Credit card is a novel item planned extraordinarily to help the poor in personal loans like agriculture who aren't a lot mindful of banking exercises. This card plans to shield the interest of the ranchers from the hands of moneylenders who may charge extreme interest from them on the off chance that they have a Kisan Mastercard, they can utilize it with low charges. This Mastercard is connected to the rancher's investment account on each Kisan card.

Must Read-Personal Loan for House Repair

 

Why should you avail of a Home Loan?

In India, people have a different intrinsic emotional value attached to having their own homes. This has been primarily made possible due to various financial assistance provided by multiple institutions. Having a home on our own can cost way more along with the vast immediate payment to be made whether to buy, construct, or repair a home. This payment can be made monthly easily in small proportions over some time. That is why banks came with the concept of EMI (Equated Monthly Installments), which are nothing more than the interest and principal payments to the banks. They are to be paid monthly and hence become more bearable by the borrowers. 

Before availing of a Home loan interest rate, a person should identify their needs regarding why they are going for a home loan. 

As a home loan is offered for various purposes such as-

• Home renovation.

• Home purchase.

• Home construction.

• Improvement of house.

• Extension of home.

• Acquisition of Land/ Plot.

A person must identify their needs, and if they fit anywhere in between the above points, they must go to avail a home loan. 

The following advantages of home loans will also provide a better understanding as to why you should go for a home loan-

1. Affordable rate of interests-

People in our country are more saving-oriented than expenditure-oriented. Home loans offer loans at much lower interest rates that seem very affordable compared to any other sort of loan available in the market. The rates of interest are charged keeping in mind the middle-class person of the country.

      B. Helps in the improvement of credit score-

With prompt and timely repayments, the credit score of an individual takes a boom. A credit score is a significant factor for anyone to get loans in the future. A credit score is a measure to know the creditworthiness of an individual. A person with a low credit score is seen as a risky person by banks.

     C. Tenure and payment flexibility-

Home loans come with a lot of flexibility, both in terms of tenure selection and payment options. Home loans are available for a short period and prolonged periods that can go upto 30 years. Payments of such home loans are to be made in EMI (Equated Monthly Installments), which are to be paid every month. This makes the repayment even more accessible, and the borrower feels less burdened as there is no need to make a heavy repayment all at once. It has to be done each month in small proportions over some time. 

     D. Income Tax benefits-

Income tax acts provide significant deductions in terms of payment of EMI to banks by the borrower. The borrower can claim an Income tax deduction under section 80 C of The Income Tax Act for the amount of EMI made.

This helps a person to enhance their savings in the form of tax savings under Income tax.

    E. Better option for future growth-

If one has their property, there are bound to get many benefits arising from it in the future in terms of capital appreciation. Capital gains will also be made if the person wishes to sell their property in the future. 

    F. Many options available-

Due to the advent of technology, banks, and other financial institutions have made their online portals host their services, trying to serve maximum customers with satisfaction. There are many such banks and financial institutions available in the market providing their services. This creates clutter, and the customer gets to choose from a variety of options and select the best one. There is no way a monopoly in the financial market. Many foreign banks are also in the competition providing their services, such as Syndicate Bank home Loan, which calls for more strict compliance and healthy competition.

Conclusion-

A home loan is a safe and secure way of raising finance to get home. Home loans are made available through both online and offline modes, but in the current situation, online mode is the most preferred and promoted way of applying for a Home loan.